National Transport Policy of Pakistan 2017
Ministry of Planning, Development & Reform Government of Pakistan National Transport Policy of Pakistan 2017
Key messages from the Prime Minister, the Minister of Planning, Development and Reform and the Chief Ministers
2 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Key messages from the Prime Minister, the Minister of Planning, Development and Reform and the Chief Ministers
[Brief statements or messages from the Prime Minister, Minister of Planning, Development and Reform and the Chief Ministers to be added.]
3 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
4 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Contents
Introduction messages 2
1 The State of Pakistan’s Transport Sector 4 1.1 Pakistan’s Transport Context: The Current Situation 5 1.2 Business as Usual Scenario 10
2 The Need for a National Transport Policy and Master Plan 14 2.1 Contribution to the Pakistan’s Government Policies and Plans 15 2.2 Relationship with existing policies and transport plans 16
3 National Transport Vision for Pakistan 17 3.1 Vision Statement 17
4 Principles for the Governance of Pakistan’s Transport Sector 18
5 National Transport Policy Objectives 21
6 Policy directions for each of the transport sub-sectors 26
6.1 Road transport 27 6.2 Rail transport 28 6.3 Air transport 29 6.4 Maritime transport 30 6.5 Pipelines 31 6.6 Inland Waterway transport 31 6.7 Urban transport 32 6.8 Multimodal logistics 33
7 Implementation arrangements 34
8 Bibliography 37
5 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
1. The State of Pakistan’s Transport Sector
6 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
1. The State of Pakistan’s Transport Sector
Transport is a key driver of socioeconomic development. 1.1 Pakistan’s Transport Context: Transport allows our people to access jobs, markets, social interaction, education, and other services, The Current Situation enabling people to rise out of poverty and overcome social exclusion. Transport adds value to goods brought Pakistan is a populous and rapidly urbanizing country, to markets, links rural areas to cities and global supply with an ever-growing demand for transport. With a chains, driving economic development. population approaching 210 million, it is the 6th most populous nation in the world and continues to grow at The Government of Pakistan, cognizant of this fact, has a high rate of 2.4% (Pakistan Bureau of Statistics, 2017). invested large amounts of human and financial resources Pakistan’s population travels nearly 400 billion passenger into the development of the transport sector. Such kilometres (pkm) each year and this is expected to rise investments are also being supported through the China to 1,000 billion pkm by 2030 (estimates based upon Pakistan Economic Corridors (CPEC) program, the Central Pakistan Economic Survey, 2017). This population growth Asia Regional Economic Cooperation (CAREC) program and continues to add pressure on the transport infrastructure, other foreign-assisted initiatives. access to basic public services (particularly healthcare and education), availability of land and housing, and the Pakistan has the opportunity to match these vast natural environment. The urban population accounts investments with a cohesive policy and planning framework for approximately 76 million residents, or 36% of the to transform the transport sector into a modern, sustainable population and is set to reach 50% by 2025 (Planning and effective one, helping businesses to grow, empowering Commission, 2014; Pakistan Bureau of Statistics, 2017). the creation of new industries and supporting the creation Plans have been prepared to help improve urban transport of quality jobs. and mobility within a number of cities. For many of these plans, investment in road transport infrastructure and mass This National Transport Policy (hereafter the Policy) is a transit systems has been the focus. Yet, such improvements manifestation of the Government of Pakistan’s aim to have fallen short of the challenge at hand, resulting in achieving world class standards for Pakistan’s transport growing congestion and both environmental (air quality/ sector. The Policy sets the overall direction of the sector. noise) and safety (crash) problems. Karachi, Peshawar and It contains the overall vision (chapter 3), principles for Lahore have been ranked low in terms of liveability due to the governance of the transport sector (chapter 4), policy environmental quality (World Health Organization, 2016). objectives (chapter 5), contributions for each subsector These all have negative impacts on economic productivity, (chapter 6) and the implementation arrangements (chapter social well-being, and people’s ability to prosper in the 7). This will be elaborated in an accompanying Master Plan long-term. which shall identify all necessary interventions to achieve the vision and policy objectives.
The Policy has been developed through a collaborative process, receiving inputs from many key stakeholders from across federal and provincial government agencies, transport operators, the business sector, academia, and civil society.
7 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Pakistan’s economy has recorded steady growth, but job (iii) Urban transport is dominated by the road sector. creation and investment is an ongoing challenge. Since Heavy vehicles (trucks and buses), passenger the global recession in 2008-09, Gross Domestic Product vans, private cars, motorcycles, taxis, qingqis, and (GDP) growth is rising to 5.3% in 2016-17 and is forecasted pedestrians share the road in the urban environment. to continue to growth to 5.8% in 2019 (Ministry of Finance, Cycling in the urban centre is almost non-existent. 2017; World Bank, 2017). Transport itself contributes 22.3% Car-oriented development has been the focus of of the services sector GDP and accounts for approximately many areas with a resultant lack of safety facilities for 6% of the nation’s total employment (Ministry of Finance, pedestrians. Several large cities, including Lahore, 2017). However, GDP needs to grow at 7-8% to create an Islamabad-Rawalpindi, Multan, Karachi and Peshawar additional 1.5m employment opportunities per annum have developed or are implementing bus rapid and investment levels need to improve beyond the current transit systems. level of 15.8% of GDP, which is one of the lowest investment (iv) Rural transport is dominated by the road sector as rates in the world, and only half of the South Asia average well. It comprises of a mixture of sealed (metaled) (Ministry of Finance, 2017; World Bank, 2017). The increasing and unsealed (unmetaled) roads. The main modes fiscal deficit adversely impacts on the capacity of the of transport in rural areas are on foot, bicycle, Government of Pakistan to increase transport investment. motorcycle, qingqi and tractor-trolley for freight. Rural accessibility remains low, with only 53% of the The geography and past development of Pakistan lead rural population living within 2 km of an all-weather to four distinct levels of transport flows that interact. road (calculations based upon Rural Accessibility International transport through international gateways, Index of the World Bank, 2017), compelling them to inter-urban via the strategic federal and provincial network, long travel times to reach markets and other areas. urban and rural transport: (i) International transport is connecting Pakistan Rural connectivity remains important for equitable via its border crossings, ports and airports to growth. Rural communities account for 118 million persons its neighbouring countries and further abroad. or 60% of the population (Ministry of Finance, 2017). Over Pakistan’s economy relies on these international half of the rural population experience and live in poverty connections, including a large Pakistani work force in (Ministry of Finance, 2017). This affects women in rural areas the Gulf states that fly in and out. In addition, there more, and is largely contributable to their lack of access is a growing emphasis to increase trade with the to healthcare facilities and inability to attend schooling Central Asian region. (Planning Commission, 2016). The low connectivity in rural areas, with the majority of all rural health, education, (ii) Inter-urban transport facilitates domestic and market facilities accessible only by dirt roads, limits connectivity to and from the main destinations economic growth and ways to alleviate poverty in these within Pakistan. Inter-urban passenger and freight areas. Overloading of trucks and the frequent use of transport in Pakistan is primarily via road (94% of tractor-trolleys on rural roads is severely affecting the all passenger kilometres (pkm) and 98% of freight quality of the road network. There exists limited (financial tonnes kilometres (tkm), wherein 80% is via the and institutional) capacity to maintain and develop the National Highway Network and rail (5% of all pkm rural transport network with roads being maintained at the and 2% of all tkm). A small proportion of passenger district level and no mechanisms for asset management trips and freight are by domestic flights (1% of all implemented. Moreover, the large economic disparity pkm). Pipelines are utilized for oil and gas. Inland between urban and rural areas increases the rural to urban shipping or ferry-services as a means of inter-urban migration, resulting in an increased pressure on urban transport is yet to be developed (estimates based areas. This emphasizes the need to provide an integrated upon Pakistan Economic Survey, 2017). framework for rural and urban areas to facilitate regional equitable growth.
8 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Development in the transport sector has been Poor condition of safety for all road users. The World unbalanced with no coherent institutional framework Health Organization (WHO) estimates that 25,781 persons and up to date legislation. This has resulted in poor were killed in road crashes in Pakistan in 2013 due to integration of transport services, underutilizing the full many factors, including poor driving skills, limited usage potential of road, rail, air, ports, pipeline and waterways in of protective helmets on motorcycles, outdated vehicle Pakistan. This limits the sector’s ability to operate effectively standards, poor road design and no routine maintenance. and adversely affects the environment and economy. A lack The creation of a specialized traffic enforcement unit on the of integrated planning activities and effective governance federal road network, the National Highways & Motorway impedes the ability to accommodate future population Police (NH&MP), has resulted in a significant reduction in and development growth. Responsibilities for planning the number of crashes on the national highway network. and development of transport infrastructure are divided In 2010, efforts were made to develop a National Road between several ministries. Investments are allocated to Safety Council and its secretariat, consisting of all relevant projects without sufficient attention to network integration authorities. These efforts, however, have fallen short of and long- term strategic goals. Legislation, such as the providing a sustained improvement to road safety mainly Motor Vehicles Ordinance 1965, are outdated and require due to a lack of institutional support and funding. Pakistan updating to meet current standards. has adopted the National Road Safety Framework and Action Plan in 2016, which is a first step to address road The local logistics industry is under-developed safety. Prerequisites for sustained road safety improvements and does not provide cost effective and integrated require further high-level political support, a lead agency modern logistics services. Pakistan’s economy is in government to guide and coordinate the national road rapidly transforming, with increased weight towards the safety effort, a national road safety strategy and plan of services sector; annual growth in the services sector from action which is supported by adequate and sustained 2009-10 to 2016-17 has been the strongest of all sectors funding and resources, implementation of evidence based increasing each year to a current level of 6.0% growth. specific actions, consistent with the principles of the UN The World Bank’s Logistics Performance Index for 2016 endorsed Safe System approach. ranks Pakistan at 68 among 160 countries for the quality of trade and transport infrastructure (i.e. ports, rail, roads Pakistan has a significant railway network but has not and information technology) and quality of logistics been successful in capitalizing on its role as part of service providers (World Bank, 2016). Although this is an integrated national transport network. The railway a vast improvement from Pakistan’s 110th point in the network totals 7,791 km (Ministry of Finance, 2017). same ranking in 2010, further efforts are needed to equip Despite this significant network, the current market share the country for this major transformation. Particularly, by the rail sector is only 2% of the freight market and 5% the required reform of the trucking sector has yet to be of the passenger market (estimates based upon Pakistan implemented to adequately address the ageing vehicle Economic Survey, 2017). This is primarily due to under fleet and high vehicle emissions. investing in infrastructure, operations, and human capital. Since 2012-13 this is now being addressed, with increased Limited level of cross-border transport facilitation. availability of locomotives and implementation of the Located at the crossroads of Afghanistan, Central Asia, the necessary reforms. With the continued strong domestic People’s Republic of China, India, and Iran, Pakistan has economic growth and the ongoing reforms in Pakistan huge potential to become a hub for regional transport Railways, there exists a great potential for the rail sector and trade. As a member of the CAREC program, and in to grow from its current position and play a key role in the accordance with the priorities of the CAREC Transport and transport sector in the future. Trade Facilitation Strategy 2020, Pakistan is attempting to increase transit traffic with its neighbouring countries. However, considerable challenges remain to fully operationalize efficient transit. Border crossing point infrastructure is in poor condition, and customs and other procedures have yet to be harmonized with neighbouring countries, resulting in long delays at the borders.
9 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Whilst the aviation sector is gradually growing, there is As the economy expands, this opportunity will grow and an ongoing challenge in terms of the ability of airport will be in a prime position to support the growth of bulk facilities and customs procedures to address security carriage markets from particularly the cement, mining and concerns and meet global supply chain standards. agricultural sectors. Prospects for inland waterways based Despite the continued growth in the Pakistan population passenger and freight transport corridors within a number and economy, airline passenger numbers have experienced of major cities also exist. only a gradual increase compared to global trends with 19.7 million international and domestic passengers in 2015-2016 Pipeline networks are an efficient and cost-effective (Pakistan Civil Aviation Authority, 2016). Recent years show means of transporting natural gas and oil, supplies to an increased uptake of international passengers, particularly terminal facilities and refineries. Investment in oil and gas to and from the Gulf states. Pakistan International Airlines pipelines is a relatively new initiative, and will help reduce (PIA) as the flagship carrier has 60% of the domestic market the ongoing loads on the road network. Oil pipelines carry share and 27% of the international market, albeit that the approximately 37% of all petroleum products, whereas market share has been declining. PIA is currently being 61% is carried by road, and the remaining 2% is carried reformed to improve its financial health (Ministry of Finance, by rail. This contributes significantly to safety risks on the 2017). Karachi, Lahore and Islamabad airports collectively road, and can be addressed through an expanded pipeline account for 80% of the total aviation market (Pakistan Civil network. Oil pipeline connections exist to the ports and Aviation Authority, 2016). The limited growth in aviation the refineries, however they are not yet fully utilized. volume is a result of protectionary policies, high taxation The implementation of new pipeline infrastructure has levels, and declining tourism. In addition, relatively high commenced at Port Qasim refinery facilities. Several gas freight charges and coupled with inadequate cargo facilities pipeline connections are currently under development, at certain airports, have also limited the ability to expand including to Iran and Afghanistan. the air cargo market. Major infrastructure development and upgrading of existing airports are well underway to address Environmental degradation is of concern. Nearly 60,000 these concerns. people die each year from air pollution related diseases in Pakistan and all large cities in Pakistan have severe air Poor hinterland connectivity limits the potential of pollution problems (World Health Organization, 2016). The Pakistan’s ports. The ports of Karachi and Port Qasim serve transport sector currently contributes about one quarter of the bulk of Pakistan’s maritime transport demand. Gwadar the country’s CO2 emissions and requires urgent addressing Port is currently under development and plans for a fourth (World Health Organization, 2016). With increasing port of Keti Bandar are being considered. Karachi Port congestion, the rapid decline in air quality and rise in noise handles approximately 60% of all Pakistan’s seaborne traffic, levels, will continue to affect the health of the population. with 39 million tons of cargo in 2016-17, including nearly 2 million TEU (Twenty-foot equivalent unit) container traffic. Restricted mobility has been identified as a main Port Qasim handled 27 million tons of cargo, including barrier for women in accessing key services. Arranging approximately 1.2 million TEU in 2016-17 (Ministry of transport is considered a problem for 40% of women in Finance, 2017). While infrastructure and operations at the Pakistan in accessing health care (Asian Development Bank, sea ports are generally satisfactory or are being improved, 2015). Car and motorcycle ownership levels by women are poor hinterland connectivity and overseas transhipment considerably less than by men, and are therefore reliant delays are currently being experienced. Coupled with delays for any form of transport on extended family members, at the border crossings, they hinder an efficient transport neighbours or (generally male operated) public transport logistics chain resulting in further overall delays and for travel. additional costs. This lack of access to reliable and affordable transport can in There is large untapped potential for inland waterway many cases lead to an exclusion of women from economic operations. Pakistan has an elaborate canal system as well opportunities, poor access to healthcare for vulnerable as navigable rivers serving large agricultural areas. Inland family members (the elderly and children) and poor access waterway transport can therefore be a valuable addition to education facilities. to the transportation of rural and industrial freight, as is currently piloted in Punjab province between Attock and Daudkhel.
10 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Classification of Transport sub-sectors In approaching the transport sector, it can be classified in accordance to its’ end-users, the domains it operates in, its’ attributes and the different modes. Each aspect needs to be considered to improve the performance of the sector as a whole (see figure 1).
In this Policy, the following transport sub-sectors are recognized:
(i) Road transport, which includes the federal, (v) Pipeline transport, which includes mainline provincial and district road infrastructure (including pipeline infrastructure, including storage terminals passenger and freight terminals), road transport and operations. vehicles, transport operators (owners, operators, and (vi) Inland waterway transport, which includes the drivers), and road users. Road transport services are terminal and navigation infrastructure, the waterway, classified into public transport and private transport. ferry and freight services. (ii) Rail transport, which is primarily provided by (vii) Urban Transport and Multi-modal logistics Pakistan Railways and increasingly through are identified as cross-cutting sub-sectors where dedicated companies, and includes the rail network several modes of transport need to cooperate to and associated infrastructure, rolling stock, provide mobility for passengers and movement of manufacturing and maintenance facilities, dry ports freight. Urban transport covers all transportation and other assets and services. in towns and cities in Pakistan, including transport (iii) Air transport, which includes all civil airports infrastructure, public transport (operators), private in Pakistan, domestic and international airlines sector transport, non-motorized transport and (including the national flag carrier Pakistan transport management. Multi-modal logistics covers International Airlines), terminal service providers, the trade and transportation facilitation services airways and airport traffic control. to move goods utilizing supply chains, including transportation and warehousing services, for both (iv) Maritime transport, which includes the general domestic and cross-border freight movements. port and maritime infrastructure and specialized terminals, as well as shipping lines (including Pakistan National Shipping Corporation).
Figure 1. Dimensions of the transport sector
11 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
1.2 Business as Usual Scenario Secondly, the economy of Pakistan is concentrated around the valley of the Indus rivers, forming the economic backbone of the country and a natural corridor which caters Under business as usual, Pakistan’s transport sector for the majority of all traffic. will increasingly face constraints in serving the needs Thirdly, the population is growing rapidly in urban areas, of its people. creating ever growing pressure on the local transport Firstly, Pakistan’s population is growing to an expected 300 systems. By 2030, more than 10 cities will have populations million people by 2050 (United Nations, 2017). This will over 2 million inhabitants (United Nations, 2017), requiring result in a projected 5-fold increase in passenger kilometres advanced transport systems to keep the city moving. by 2050 to potentially 2 trillion passenger kilometres. Currently, transport is predominantly by road and trends Projected demand for freight transport will increase even show that without effective policy intervention, this will further, doubling by 2025 and increasing six-fold by 2050 continue. The take up of motorized vehicles is accelerating to 600 billion tkm. Pakistan’s transport sector will be and have reached 18 million vehicles in 2015. This is challenged in accommodating these volumes. projected to rise to 50 million vehicles by 2025 and to (see figures 2 and 3). over 75 million vehicles by 2050. The primary take up is by motorcycles, which has been growing at 20% annually since Figure 2. Historic and projected passenger demand 2008 (see figures 4 to 7). This accelerating trend of private motorized road transport will put a strain on the physical infrastructure, as the current road infrastructure is not designed to handle these increased volumes. Consequently, and unless effective policy interventions are initiated, this will result in higher levels of transport congestion, increased road crashes, larger asset management deficiencies and further adverse environmental impacts.
Figure 4. Projected and historic registered road vehicles in Pakistan
Source: Calculations based upon Pakistan Economic Survey, considering road, rail and domestic aviation
Figure 3. Historic and projected freight demand
Source: Calculations based upon Pakistan Economic Survey
Source: Calculations based upon Pakistan Economic Survey, considering road, rail and domestic aviation
12 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Figure 5. Breakdown of road vehicles registered Rail transport currently plays a small role in Pakistan’s transport sector, capturing approximately 5% of the passenger market and 2% of the freight market. In the future, it is expected that the number of passengers carried will increase to approximately 50m passengers by 2030, particularly due to improvements to ML-1 as part of CPEC, increasing its market share to 5-6% (see figure 8 and 9). Without significant changes in infrastructure and operations, it will not be able to increase its passenger market share beyond 8-9%. Carriage of particular commodities by rail will continue to take place, especially for coal fire plants. As the economy of Pakistan increasingly shifts to manufacturing, there is a potential market for containerized traffic by rail.
Figure 8. Projected and historic passenger kms by rail
Source: Pakistan Economic Survey (2017)
Figure 6. Breakdown of road vehicles registered
Source: Calculations based upon Pakistan Economic Survey
Source: Calculations based upon Pakistan Economic Survey Figure 9. Projected and historic freight tonnes kms by rail
Figure 7. Mode share freight tonnes kms
Source: Pakistan Economic Survey (2017) Source: Calculations based upon Pakistan Economic Survey
13 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Over the last decade international air travel to and Inland water transport plays no significant role in Pakistan from Pakistan has grown by 50% to approximately 18m at the moment, despite the very large potential of the Indus passengers, whereas during this time, the domestic market river and supporting canals to Sindh and Punjab provinces remained near static at approximately 6.5m passengers for potential direct connectivity to Port Qasim and Karachi per year. Without new entrants and reduced costs only a Port. Under business as usual, this trend is set to continue. continuation of existing marginal growth can be achieved on the domestic market, to approximately 9 million Freight logistics at Karachi Port and Port Qasim will passengers per year by 2030 and 13 million by 2050. The face further disruptions due to inefficient logistics and domestic market has the potential for growth rates up ineffective hinterland connections. With historic growth at 4 to 50 million by 2050, if it can become affordable to the and 5 per cent annually, and the ongoing expansion of Port wider public. International air travel is currently at pace Qasim and Gwadar Port, it is anticipated that the physical with the economic growth and has grown primarily from capacity of port facilities will not be of hindrance in the near Karachi, Lahore, Islamabad and more recently Peshawar future. Figures 12 and 13 show the historic and projected to the Gulf states. Under business as usual, it is expected freight demand of the ports. this growth will continue and reach approximately 100 million passengers by 2050 (see figures 10 and 11). This is significantly lower, compared to other countries in the region.
Figure 10. Historic passengers demand by air Figure 12. Historic port development by port
Source: Calculations based upon CAA historic statistics Source: Pakistan Economic Survey (2017)
Figure 11. Historic and projected passenger demand by air Figure 13. Forecasted freight demand of the ports
Source: Calculations based upon CAA historic statistics and Source: Calculations based upon Pakistan Economic Survey Airbus outlook
14 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Rural areas will see a marginal improvement in mobility and connectivity, due to the increased motorcycle ownership levels. Without the continued expansion and improvement of the local road network, a stronger rural-urban migration will occur with increasing differences in level of service offered between rural and urban areas. It is therefore considered essential to further improve the rural road sector by improving connectivity and provide a good level of service.
The CPEC and CAREC flagship programs provide a unique opportunity for Pakistan to leverage off its geographical position. These programs provide economic corridors linking to both international trade and domestic production and collectively include new or upgraded roads, railways, ports, pipelines, and airports. The infrastructure upgrades that these programs will provide for Pakistan require a new approach to the transport sector operations to ensure these opportunities are realised.
The main challenges highlighted under the business as usual scenario are to: (i) reverse the trend of increased private motorized road transport, by providing viable transport services for passengers and integrated transport network; (ii) make rail competitive for containerized transport to capture the transport emerging from the growing manufacturing industry; (iii) increase the efficiency of the logistics sector to support achieving the six-fold increase in Pakistan’s transport export; (iv) develop an adequate transport system for all large cities which can cope with the growing urban population; (v) improving rural accessibility for all; (vi) providing the necessary tools for improved traffic safety and environmental standards;
If not addressed, increased congestion, emissions and ineffective handling of goods will result. This will have a significant negative impact on the economy and will result in a failure to achieve the Vision 2025 goal of having a modern transport sector which is sustainable and inclusive, helps Pakistan to keep pace with its south Asian neighbours and rise to among the ten largest economies of the world by 2047.
15 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
2. The Need for a National Transport Policy and Master Plan
16 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
2. The Need for a National Transport Policy and Master Plan
In view of these challenges facing the transport sector, Contribution to Sustainable this Policy is being adopted to guide the overall Development Goals development of the transport sector in the mid to long- term. A National Transport Master Plan will be adopted Eradicating poverty is the prime goal of the UN for the implementation and delivery of the Policy. Sustainable Development Goals. With up to 30% of our population living below the poverty line, it is The National Transport Master Plan is the plan of action, fundamental to improve our transport system. describing the proposed interventions and initiatives, by which the objectives of the Policy are achieved. The Food security and healthcare will require providing National Transport Master Plan will be based upon the reliable and sustainable transport system. Youth directions set in the Policy and incorporate themes and attending schools and higher education, providing findings of existing modal policies and transport-relevant opportunities for employment and empowerment master plans and strategies, at all levels of Government. of women, demands that our transport system is The National Transport Master Plan will have a 10-year safe, secure and accessible, and to be inclusive for timeframe with a review each 5-years, coinciding with people with disabilities and elderly to maintain their Pakistan’s five-year Development Plans. independence and dignity. Reducing greenhouse gas emissions can only be realised with decisive action to Transport in Pakistan requires the need to work achieving sustainable transport. The Policy will directly collaboratively across all levels of Government. The Policy impact upon our ability to making progress in achieving and Master Plan is therefore applicable to the Federal the Sustainable Development Goals: Government, Provincial Governments and the Government of Azad Jammu and Kashmir, Government of Gilgit - Zero Hunger: Development of an efficient transport Baltistan, Government of Islamabad Capital Territory, and supply chain that provides reliable and timely access Federally Administered Tribal Areas. of agricultural products to markets will contribute to meeting this goal. The Policy recognizes different circumstances and needs - Good Health and Well-being: Transport can facing each province and region. In this respect, it explicitly contribute to this objective by focusing on improving notes the need to integrate and harmonize the overall access to essential services, improving road safety, and approach to transport sector governance on a whole- reducing air pollution from transport. of-Pakistan basis. The National Transport Master Plan therefore incorporates sub-sector, local and national plans, - Affordable and clean energy: Rationalizing the ensuring the delivery of the Policy. usage and financing of fossil-fuels, as well as shifting to more sustainable fuels, will support the transition toward a clean energy future. It will also avoid high 2.1 Contribution to the Pakistan’s dependence on oil, which will increase in price Government Policies and Plans over time. - Industry, innovation and infrastructure: Developing The Policy shall be reflective of the priorities of the resilient and sustainable transport infrastructure will Government of Pakistan, as stated in various medium help meet travel needs, now and in the future. and long-term policies and plans of Government. - Sustainable cities and communities: Providing access to safe, affordable, accessible and sustainable The role of transport is one of facilitating progressive transport systems in urban areas, with a particular change towards economic development, preserving the focus on non-motorized and public transport will help environment and achieving social equity. This includes develop sustainable cities and liveable communities. driving the nation towards higher competitive productivity, following the priorities of the economic activity and - Responsible consumption and production: associated employment, and enhancing regional trade The integration of land use and transport will reduce prospects; whilst at the same time addressing communities the requirement for transport vehicles, fuels and and individual’s desires for inclusion, security and greater other resources. social equity. - Climate Action: Strengthening the resilience of The Policy fully supports these priorities and the Master transport infrastructure and services, as well as Plan is the means by which these benefits can become reducing the greenhouse gas emissions is a core a reality. of any future developments to adapt and mitigate climate change.
17 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
2.2 Relationship with existing policies and transport plans
A sustainable and integrated transport is best achieved when all subsector and related policies are aligned. This Policy sets the overall objectives for the transport sector as a whole. Several specific policies exist, which are aligned and will be further harmonized with this Policy. This Policy will provide ongoing direction for the subsequent harmonisation of other subsector policies and localized strategies as may be developed by Government.
Related policies (List is not exhaustive) Automobile Development Policy (2016): Focuses on a future road map for tariffs, vehicle standards and an effective monitoring regime to assist the automotive sector in better complying with international standards. National Aviation Policy (2015): Focuses on capital and human investments in the operations and infrastructure to ensure a safe, secure, efficient, adequate, economical and properly coordinated civil air transport system in Pakistan. National Environment Policy (2005): Seeks reduction of emission levels from the transport sector, especially improving the ambient air quality in urban air-sheds. National Climate Change Policy (2012): Addresses the impact of climate change, by promoting development and adoption of environmentally friendly transport technologies and fuels and other carbon reduction strategies. National Maritime Policy (2002): Addresses the Maritime sector by amongst other matters, improving the integration and efficiency of ports and shipping within international supply chains. A revised 2017 version is currently with Cabinet for approval. National Policy for Development & Women’s Empowerment (2002): Calls for barrier free transport access and convenient connectivity for all, regardless of gender. National Policy for Persons with Disabilities (2012): Advocates for barrier-free transport for all, regardless of age, physical, visual, hearing or other disabilities. National Trade and Transportation Facilitation Strategy (2016): Calls for improved transit facilities and processes for the transport and carriage of goods and services to and from the international market. National Trucking Policy (2007): Seeks to modernize and upgrade the sector to comply with international standards in freight vehicle standards and operational capabilities. Pakistan Railway Strategic Plan (2017): Sets the overall direction for the future development of Pakistan Railways. Urban Transport Master Plans: Several cities and provinces have developed urban (transport) master plans seeking to address the local issues pertaining to the urban city.
18 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
3.1 Vision Statement
The transport sector Vision statement provides a 3. visionary and unifying message which expresses both a desired end outcome, and a preferred pathway to be followed by all stakeholders to achieve that outcome. Such a Vision is as follows:
To support Pakistan in becoming one of the top 25 global National economies by 2025 and top 10 by 2047, the nation’s transport vision is to:
Transport Provide safe, affordable, efficient, durable, and environmentally friendly means of Vision for transport, ensuring reliable access to jobs, markets, education, and other services Pakistan for all.
Annotation to confirm the essences of the Vision Provide safety: recognises the importance of improving the safety in service and infrastructure according to international best practices. Affordable:creating a transport system that is inclusive to everyone. Efficient:ensuring a system which minimizes travel time and costs for its users. Durable: able to be sustained over time environmentally. Friendly: reduces the environmental impact of the transport system, as well as able to adapt to climate change. Means of transport: recognizes that all modes are involved. Ensuring reliable access: the essence of the role of transport, connecting individuals and goods in rural areas, cities, between cities and internationally in a reliable manner. Jobs, markets, education and other services: providing access to these services that are required to enable people to rise out of poverty, overcome social exclusion and bring goods to market, driving socio- economic growth. For all: irrespective of location, income, gender, age, race, or disability.
19 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
4. Principles for the Governance of Pakistan’s Transport Sector
20 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
4. Principles for the Governance of Pakistan’s Transport Sector
The principles for the governance of Pakistan’s (i) Road transport will remain the key provider for local transport sector are the fundamentals upon which the accessibility and connectivity across the country. For transport sector can further develop. The principles road based passenger transport, priority will be given derive from the analysis of the current state of the to the use of non-motorized and public transport, transport sector (Chapter 1), and aim to maximize providing access to local neighbourhoods, transport existing strengths whilst improving upon areas of hubs and other important destinations. For freight weakness. Adherence to these principles is important transport, the primary role of road transport will be to to meet the policy objectives (Chapter 5). They shall provide, via selected corridors, access to and from local be delivered progressively through actions in each markets, ports, airports, dry ports, agricultural areas, subsector (Chapter 6) and through the implementation mining resources, industrial zones, and logistic hubs. arrangements (Chapter 7). (ii) Rail transport in Pakistan will connect urban centres, the ports and specific industrial zones. For passengers, Principle 1. Transport policy shall be objectives-led, the railways will cater primarily to frequent and direct and target driven. Objectives and targets shall guide inter-urban passenger transport services, providing the development of the transport sector and inform connectivity between urban centres and to public decision-making at all levels of government. These transport hubs. The primary role of rail in the freight objectives are set in this Policy and targets will be set in sector will be to provide direct long-haul freight the National Transport Master Plan. Targets will be made transport between industrial zones across the country SMART (Specific, Measurable, Achievable, Realistic, Time- and to the ports. Inter-regional connections for freight bound). Sector-wide progress against these objectives and passengers will be promoted. and targets shall be periodically monitored, reviewed, and reported on, in the Government’s Annual Plan and (iii) Air transport will connect Pakistan to international Five-Year Plans. Objectives and targets will be reviewed markets from a select number of international airports and adjusted, as part of the 5-year reviews of the National and will provide long distance (>1000km) domestic Transport Master Plan, to ensure compatibility with national travel and connectivity to remote domestic areas. The development plans. Proposed actions will be detailed in the primary role of passenger air transport is to provide Government’s Annual Action Plans. New programmes and frequent and direct connections to international hubs projects are evaluated through a revised PC-1 proforma, and provide regional connectivity. For air freight, the in accordance with their relevant contributions to the primary role is to be an integral part of international objectives of this policy. supply chains, especially for high-value and time- sensitive freight. Principle 2. Decisions shall be guided by evidence (iv) Maritime transport connects Pakistan to international and data. In support of Principle 1, the Government will markets and promotes integration with international improve the quality and quantity of data and statistics supply chains. Its primary role is to provide efficient relevant to the transport sector. Processes and methods and effective carriage of goods to and from overseas, for data collection will be made consistent across both in terms of direct services and via indirect feeder Government. A national transport data observatory will be connections. Opportunities for domestic and regional institutionalized to agglomerate and publish key statistics coastwise passenger and freight services may emerge in a structured manner, for better policy making by the over the longer term. government, analysis by industry and academia, and to inform the general public. Surveys and data collection will (v) Pipeline transport will cater to the movement of be routinely carried out to add to the knowledge base to specific commodities namely crude oil, petroleum support decisions on transport sector development. This products and natural gas from gateway ports and will improve accountability and legitimacy of transport land based import terminals to refineries, industrial sector decision-making. areas, and large cities. The pipeline network will also provide for inter-connection and distribution of Principle 3. Projects and programs shall contribute petroleum products and natural gas between urban to a multimodal and integrated transport system. An area terminals. integrated multi-modal transport sector will be achieved (vi) Inland water transport will cater to local passenger through holistic integrated planning across all modes, ferry services and the crossing of rivers. For freight, including effective integration with the natural and built it is to carry medium to long haul freight with environment. All projects and programs will define their intermodal connectivity. contribution to improving the international, inter-urban, rural and urban transport. A hierarchy of modes will be adopted, establishing the primary role for each transport mode in an integrated transport sector:
21 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Integrated urban transport plans, with specific attention to Principle 8. Public sector funding shall be directed public transport, non-motorized transport, and interchange in a targeted manner, with systematic exploration of facilities, will be prepared and implemented for all major alternative funding sources. Investments will reflect the urban areas of Pakistan to address urban congestion and priorities of this Policy. Accordingly, once a decision to improving connectivity across Pakistan. Multimodal dry prioritize a project is taken, the financing should accord with ports and logistics hubs will be developed to ensure efficient this prioritization. Alternatives to public sector funding will and effective movement of freight. International transport systematically be explored for all projects. Where private facilitation shall be encouraged to harmonize cross sector participation is able to provide the necessary funding, border operations. efficiency and value for money in the implementation, maintenance and operation of transport infrastructure or Principle 4. Whole of life asset management approach a service, such arrangements will be considered. This will shall guide the development of the transport sector. improve the financial sustainability of the transport sector, Whilst investment in new infrastructure will remain and help target public funds to where they are needed important to improving the overall quantity and quality the most. of the transport system, there will be the consummate attention given to the management of new and existing Principle 9. Transport prices shall reflect their true assets. This will require the Government to (i) adopt whole costs. The price of transport services shall reflect their true life cycle asset management, including maintenance and costs, including environmental and social externalities. operational requirements, (ii) build resilient infrastructure Taxes, levies and excise duties on procurement, usage and which is capable of meeting future demands and decommissioning of transport assets shall be reviewed in environmental conditions, and (iii) strengthen asset light of this principle. Tariffs will be, as much as possible, management practices in each subsector. Adopting this set to reflect the real costs of the transport sector on a principle will bring longer life value of assets, improve level playing field basis, and will promote the usage of all-season accessibility to end-users, offer better value for more sustainable transport modes, vehicles, fuels, and money, and reduce overall costs (to both the asset owner infrastructure. Transport subsidies, wherever provided, and the end-user). shall be set on a transparent basis, and targeted to those who need them the most. This will optimize the usage of Principle 5. Transport sector developments shall the transport network by reducing any adverse incentives principally be guided by the needs of the end-users or, for specific modes and will encourage a greater usage of in some cases, by the strategic needs of the country. Any sustainable transport. project or programme will be designed based on the needs of its end-users or in specific cases based upon strategic Principle 10. The use of technology and innovation development needs. Special consideration will be given to shall be incentivized. Transport sector organizations will the needs and priorities of vulnerable populations including actively pursue the adoption of new technology to fulfil its the urban and rural poor, children and youth, elderly, women means. The Government will stimulate innovation through and disabled. Stakeholder consultations and social surveys investment in research and development, provision of will underpin the design and implementation of new incentives, and reducing legal and regulatory barriers to the projects and programmes to respond and meet user needs adoption of new technologies. Infrastructure investments as fully as possible. will be made in anticipation of megatrends which affect the transport sector at large throughout the world. These Principle 6. Coordination mechanisms within the include, but are not limited to, driverless electric vehicles, transport sector shall be formalized. Formal mechanisms automation, vehicle sharing systems and e-commerce. Such shall be instituted to ensure effective coordination between megatrends in technological changes will be assessed at Government at the district, provincial and federal level, as the time of preparing transport master plans, and amended well as between federal Ministries. This shall take place in from time to time. the form of a Cabinet Committee on Transport, covering all transport modes, with participation from the current Principle 11. Investment in skills shall take place federal transport ministries, the provincial and territory continuously. To deliver the necessary reforms required governments and with a defined mandate. In the mid- to across the transport sector, continuous improvement of long-term, the establishment of a Federal Ministry of the capacity and skills of the sector’s professionals will be Transport may be considered. required. The Government, supported by academia and international development partners, will invest to enhance Principle 7. Clear separation of roles between the skills in the civil service in such areas as transport planning, policymaker, regulator, and operator shall be pursued. design, engineering, operations, asset management and Regulatory and policy setting functions shall remain core governance. The Government will set the conditions for responsibilities of the Government and will be distinguished the private sector to invest in the skills of driver/operators, from the operations and management of transport services. transport and terminal operators, and service providers. The Rules of Business and the relevant legislation shall reflect such distinctions.
22 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
5. National Transport Policy Objectives
23 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
5. National Transport Policy Objectives
The policy objectives state the outcomes that the Objective 1: Improve connectivity and transport sector intends to deliver. Meeting the policy objectives requires directional changes in the accessibility for all transport sector. Adopted key transport policy objectives are as follows: An integrated transport network consisting of roads, railways, inland waterways, ports, airports 1. Improve connectivity and accessibility for all: An integrated transport network consisting of and pipelines will help all citizens improve access roads, railways, inland waterways, ports, airports, to schools, hospitals, markets, and jobs; improve and pipelines will help all citizens improve access community cohesion; and also serve effective to schools, hospitals, markets, and jobs; improve supply chains. community cohesion; and also serve effective supply chains. Sub-Objectives: 2. Enhance international competitiveness: Trade 1.a. Improve direct connectivity between communities competitiveness will be enhanced through the and between economic zones by enhancing access establishment of efficient international gateways and to national and provincial highway networks, harmonized operating standards with neighbouring modernizing and expanding the rail, pipeline and countries and trading partners via ports, airports and inland waterways network. land border crossings. 1.b. Develop multimodal connections and provide 3. Foster sustainable urban development: seamless transfer between transport modes by Future population and economic growth in cities increasing physical and system integration between and towns will be facilitated in a sustainable manner transport modes and improving interchange facilities. through effective land use planning and traffic management. 1.c. Improve travel time and travel time reliability along key economic corridors by addressing 4. Facilitate equitable growth across Pakistan: infrastructure bottlenecks and adopting intelligent Transport will help to facilitate economic growth of all transport measures. regions of Pakistan, especially those which lag behind the national average by targeting investments, 1.d. Develop new, and improve existing supply chains by focusing subsidies and skills development in such improving facilities at dry ports, ports, borders and areas. railway stations and enhancing logistics operations. 5. Make the best use of existing and new assets: All 1.e. Increase all-season accessibility to remote areas and transport assets will be maintained and utilized to local communities by applying climate resilient design, their maximum potential to provide value for money construction and maintenance standards to the and lowest whole of life costs. transport infrastructure. 6. Maximize user-friendliness and consistency of 1.f. Improve the accessibility to transport for women and transport services: Customer requirements will vulnerable groups by identifying and removing any be met through the enhancement of operational barriers hindering their access. performance by encouraging competition, harmonizing standards and regulations, strengthening enforcement and compliance, developing a level playing field and strengthening governance structures. 7. Ensure safe travel for all transport users and surroundings: The transport system will be safe and secure for all its end users and surroundings. 8. Preserve and conserve the environment: The transport system will minimize adverse effects on the environment.
24 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Objective 2: Enhance international Objective 3: Foster sustainable urban competitiveness development
Trade competitiveness will be enhanced through Future population and economic growth in cities the establishment of efficient international and towns will be facilitated in a sustainable gateways and harmonized operating standards manner through effective land use planning and with neighbouring countries and trading partners traffic management, and greater promotion and via ports, airports and land border crossings. implementation of sustainable transport modes.
Sub-Objectives: Sub-Objectives: 2.a. Improve connectivity with international trading 3.a. Integrate urban land use planning and transport partners by advancing competitive international development in accordance with the principles of shipping, aviation, rail and road haulage services and Transit Oriented Development, facilitating improved enhance the capacity of international corridors. public transport connections and limiting urban sprawl along bypasses. 2.b. Provide unencumbered access to and from international gateways by enhancing capacity, 3.b. Facilitate and encourage non-motorized transport developing direct connections and implementing in urban areas by upgrading the street scape, traffic management measures. developing new non-motorized transport infrastructure, managing parking, and developing 2.c. Provide efficient and effective transhipment a supporting regulatory framework. at international gateways by improving the planning, operational productivity, and enhancing 3.c. Improve the quality and accessibility of public intermodal integration. transport by increasing the coverage, modernizing the fleet and facilities, implementing supporting 2.d. Ensure that capacity is adequate to address the current traffic management and revising concession and and expected growth in international freight and licensing regulations. passenger flows by developing and implementing long-term master plans for the international gateways. 3.d. Improve urban freight logistics by improving traffic management on main corridors, promoting intelligent 2.e. Provide seamless operations at international gateways transport systems and implementing an enabling by acceding to and implementing the relevant regulatory framework. international transport conventions and establishing and implementing interface agreements with 3.e. Improve liveability in urban areas by implementing neighbouring countries. traffic calming measures, promotion of sustainable transport, implementation of cleaner fuels to reduce air pollution. 3.f. Improve transport safety and security within urban areas, to ensure that everyone is able to take advantage of the wide range of transport services within urban areas.
25 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Objective 4: Facilitate equitable growth 5.d. Maintain the transport system at a level which preserves the value of all fixed and mobile assets across Pakistan by ensuring that all assets address future needs, minimizing the whole of life cycle cost and eliminating Transport will help to facilitate economic growth the maintenance backlog. of all regions of Pakistan according to their 5.e. Enhance the integration of primary and backhaul potential, especially those which lag behind transportation operations by promoting market the national average, by targeting investments, intelligence technology. focusing subsidies and skills development in 5.f. Attract private sector funding for construction, such areas. maintenance and operations by supporting new contract modalities and strengthening the capacity of Sub-Objectives: PPP cells in all levels of governments. 4.a. Boost local employment opportunities and economies through targeted transport investments. 4.b. Link investments with marketing efforts to improve local job opportunities, including in the agriculture, Objective 6: Maximize user-friendliness services and manufacturing sectors. and consistency of transport services 4.c. Support local development strategies by facilitating sustainable transport access and Customer requirements will be met through the aligning transport developments. enhancement of operational performance by 4.d. Maximize access to specific areas, such as special encouraging competition, harmonizing standards economic zones, to unlock their potential to improve and regulations, strengthening enforcement and socio economic development. compliance, developing a level playing field and 4.e. Provide affordable transport services to the poor strengthening governance structures. and to less developed regions by implementing targeted subsidies. Sub-Objectives: 6.a. Harmonize transport infrastructure, service design, and operations by updating and implementing legislation, Objective 5: Make the best use of setting national transport standards and norms, and existing and new assets adopting service level agreements (SLA) between federal and provincial & territory governments, and All transport assets will be maintained and between provincial and local governments. utilized to their maximum potential to provide 6.b. Improve planning processes and collaboration across value for money and lowest whole of life transport institutions by constituting a Cabinet cycle costs. Committee on Transport and a supporting Advisory Committee on Transport that will be made responsible Sub-Objectives: for guiding the development of the transport sector. 5.a. Improve the level of utilisation and efficiency 6.c. Develop a level playing field in the transport sector of existing and new transport infrastructure by by reviewing and setting contracting, licensing, prioritizing investments in accordance with relevant financing, regulatory and operational standards in economic and social criteria and by improving a transparent manner. competition between and within modes. 6.d. Continuously improve the level of service and 5.b. Reduce freight vehicle overloading by reviewing operational performance of the transport sector and updating existing standards and regulations, by benchmarking, exchanging best practices and developing and implementing an implementation investing in research, technology, and innovation. strategy and enforcing compliance with vehicle 6.e. Adopt intelligent transport systems to manage construction safety and loading standards. and operate the transport network more effective 5.c. Optimise the cost of transport by applying pricing and efficient. principles and user charges (inclusive of taxes, levies, tolls) that improve utilization rates, whilst ensuring affordability.
26 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
Objective 7: Ensure safe travel for all Objective 8: Preserve and conserve the transport users and surroundings environment
The transport system, including infrastructure The transport system will minimize adverse and operations, will be made safe and secure for effects on the environment. all modes, its end users and surroundings. Sub-Objectives: Sub-Objectives: 8.a. Optimize the need for transport through improved 7.a. Improve travel safety and security by adopting, and integrated urban planning, transport demand implementing and ensuring compliance with all management, effective and efficient supply chains, and relevant international transport safety standards and promotion of e-communication options (mobile phone regulations, strengthening road safety, improving use, teleworking), driver/operator skills, upgrading vehicle standards 8.b. Reduce transport emissions (air, noise, and vibration) and implementing emergency response and accident from vehicles by improving emissions and fuel recovery protocols. standards, ensuring adherence to such standards, and 7.b. Improve the safety of transport infrastructure by promotion of sustainable transport modes. implementing and carrying out safety audits on all 8.c. Minimize the environmental impact of infrastructure new or improved transport infrastructure projects in by complying with environmental impact assessments accordance with international best practice. and the associated mitigation measures. 7.c. Ensure safe transit and movement of people and 8.d. Mitigate the impact of natural disasters by taking freight around and across transport modes by preventions and adaptability measures as well as providing adequate alternative infrastructure and improve climate change resiliency. complimentary measures. 7.d. Promote a safety culture in Pakistan by strengthening the leadership, management and institutional capacity of those agencies tasked with the design and management of transport network systems including safety standards, enforcement, regulation and education and ensure the independence and transparency of safety investigations and safety audits takes place.
27 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6. Policy directions for each of the transport sub-sectors
28 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6. Policy directions for each of the transport sub-sectors
Pakistan’s determination to develop an integrated (v) Inter-urban roads will offer efficient connections transport system will require each transport mode to between urban areas and provide integration to the improve its performance and to be integrated with areas they pass through. the rest of the network. This will require linking modal (vi) International road transport will be supported infrastructure to operations, as well as to ensure by accession to and implementation of relevant appropriate regulations, technology, finances and international road transport agreements and institutions. Achieving this integration and utilizing conventions, as ratified by Government of Pakistan. each transport mode to its full potential, is a critical challenge to be achieved. (vii) Leasing within the Right of Way shall not be pursued. (viii) The level of service1 provided on the roads will be Within the respective areas of its comparative advantage, commensurate with the function of the road. each sub-sector will contribute to the eight policy objectives, while recognizing the need to (i) improve the (ix) Road safety will be actively promoted through the infrastructure and connectivity across Pakistan, (ii) enhance adoption of the UN endorsed Safe System Approach, mobility and transport service delivery, (iii) improve including improvements to road safety leadership the utilization of the assets, and (iv) provide effective and management, safety infrastructure with a key regulations that enable safe, affordable, efficient, durable, focus on speed management and safety of vulnerable environmentally friendly transport. road users, vehicle standards regulation including access to and movement on the road network, road user behaviour, and post-crash response. (x) Negative impacts of road transport on the 6.1 Road transport environment will be reduced, including addressing vehicle emissions and noise. Overall direction of road transport under the Policy: (xi) Modern intelligent transport systems will be (i) The priority for passenger transport by road will be adopted to enhance the planning and operation to enhance the usage of non-motorized transport of the road network. and public transport. An increased focus will be made to the provision of public transport services (xii) Road user charges will reflect the priorities of this and integration to other modes. Private transport transport policy, address the externalities of road will be considered complimentary to non-motorized users and tolls will only be levied at specific roads if a transport and public transport, and will provide viable alternative exists. reliable access to low density and remote areas. (xiii) Root-causes of vehicle overloading will be addressed (ii) For freight, the predominant movement by road and eliminated. transport will increasingly be shifted to rail and (xiv) Enhancement of road related statistics will be pipeline, by better integration of agriculture and pursued to support evidence-based decision making. industry to rail stations, dry ports, and pipelines. An increased focus will be placed upon last-mile connectivity to ports, industrial zones and within urban areas. (iii) Rural roads will remain vital for providing accessibility to local communities and public services. Focus will be placed on provision of rural transport services, in addition to providing all-weather road infrastructure. (iv) Urban roads will be designed to support efficient and effective urban transport, with priority given to non- motorized transport and public transport.
29 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6.2 Rail transport (ix) Direct connectivity to, and intermodal connections between the ports, dry ports and industrial areas will Overall direction of rail transport under the Policy: be enhanced. (i) Railway operation in Pakistan will be organized to (x) Dedicated intermodal terminals for passengers will be become more commercially viable. provided within and near urban areas to connecting public transport. (ii) Railway infrastructure will remain in the public sector. Private sector participation in railway operations and (xi) A sustainable asset management regime for both maintenance will be encouraged and promoted, in fixed assets and rolling stock will be adopted. ways that serve the public interest. (xii) Rail safety will actively be promoted. (iii) Defined railway role in the transport sector will be (xiii) New technology will be adopted to enhance ease of supported by appropriate levels of investment. passenger travel and freight connectivity. (iv) A methodology for calculating compensations for (xiv) Improve environmental protection, including meeting Public Service Obligations will be developed, addressing rolling stock emissions and noise. agreed and implemented. The process of getting Public Sector Obligations from the Government, (xv) Fares will reflect the willingness and ability to including provincial and local governments, if any, pay, allowing targeted Public Service Obligations will be initiated as per the agreed framework. regulations to be considered. (v) For passengers, rail transport will prioritize the (xvi) Enhancement of rail related statistics will be pursued provision of fast and reliable inter-urban services to support evidence based decision making. between all major urban centres. (vi) For freight, rail transport will focus on the provision of long-haul transport, particularly of container, trailer and bulk commodities, to reduce the share of freight moving on the road network. (vii) The network will handle a balance of freight and passenger services. A minimum level of passenger service will be defined in line with socio-economic plans. (viii) Railway infrastructure will be modernized and expanded to improve capacity, provide connectivity across the country and improve reliability of services.
30 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6.3 Air transport (ix) The infrastructure capacity and level of service of international and domestic airports will be developed Overall direction of air transport under the Policy: in line with the functional purpose of the airports. (i) Air transport will be liberalized in accordance with (x) All airports will be connected to public transport of open skies policy on a reciprocal basis to stimulate suitable standards, to commensurate with the status new entrants establishing new routes and increasing of the airport. the number of flights to and from Pakistan, without (xi) Aviation and air travel safety and security will actively compromising national interests. be promoted. Investigation of air accidents and (ii) International long-distance connectivity will be incidents and the airport security force will be made promoted from selected airports, whilst direct independent functions. connections are promoted for regional and (xii) Negative impacts of air transport on the environment domestic travel. will be reduced, including addressing fuel standards, (iii) Specific domestic routes for socio-economic purposes noise and efficiency of aircrafts. will be targeted via Public Service Obligations. (xiii) Enhancement of air related statistics will be pursued (iv) A level playing field for both domestic and to support evidence based decision making. international airline operators will be established for passenger and freight transport. (v) Commercial, market based pricing together with rationalisation of the tax structure in the aviation sector will be established. (vi) Pakistan Civil Aviation Authority will be restructured, separating its regulatory and service provision responsibilities. (vii) Pakistan Civil Aviation Authority may enter into suitable public-private partnerships for operation, management and development of airports. (viii) Pakistan International Airlines will be restructured and rescaled to become financially viable.
31 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6.4 Maritime transport (ix) Services supporting the maritime sector will be accommodated within the existing port areas, Overall direction of maritime transport under the Policy: particularly addressing naval activities. (i) Maritime sector shall be geared to become a major (x) Third-party shipping access and provision of engine of growth through its support and facilitation maritime shipping services will be supported. of international trade. (xi) Public sector shipping lines will continue to (ii) International ports will play a leading role in the address strategic trade arrangements, whilst being promotion of the country’s integration with a supportive of broader expansion of maritime growing range of trade partners and global supply shipping services capabilities. chains and supporting regional transit trade. (xii) Coastal port harbour facilities will be promoted, (iii) Karachi and Port Qasim ports will serve as the including freight and passenger shipping primary international gateway ports for all types of service concessions. commodity shipments, with Gwadar Port balancing (xiii) A sustainable asset management regime for the national trade opportunities, transhipment and fixed assets will be adopted. regional transit. (xiv) The governance of port and maritime services will (iv) Effective and efficient infrastructure and operational be improved to comply with environmental, capacity will be provided, addressing expanding safety, and security standards established within maritime economy, freight volumes and potential international conventions. passenger flows. (xv) Enhancement of maritime related statistics will be (v) National and port masterplans will be pursued to support evidence based decision making. developed, with due attention to future capacity constraints, procurement programmes and urban (xvi) Maritime security will be enhanced for all maritime contextual setting integration. A port-city council zones and implementation through maritime planning forum will be established to support security agency. port developments. (xvii) An independent regulator will be established as (vi) Ports will be operated under a landlord port model. national maritime authority. Private sector terminal operators will lead in providing specialist terminal facilities and service delivery. Public sector will provide supportive port and navigation infrastructure and regulatory oversight. (vii) Ports’ performance in terms of efficiency and effectiveness will be continuously enhanced in terms of provision of seamless integration of ship, terminal, and landside road, rail, and pipeline operations. Further linkages to inland waterways will be considered. (viii) Hinterland connections, including dry port integration, will be enhanced.
32 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6.5 Pipelines 6.6 Inland Waterway transport
Overall role of pipelines under the Policy: Overall direction of inland waterway transport under the Policy: (i) Oil, gas and bulk liquid will principally be transported via pipelines. (i) Inland waterway transport will be promoted as a cheaper alternate, and environmentally friendly mode, (ii) Bulk dry commodities will be considered via slurry and will become an element of intermodal transport pipelines or conveyors upon establishment of a services in conjunction and support of rail and road supporting business case. freight and passenger connections. (iii) Pipeline connections will be established to ports, (ii) Inland waterway transport will focus primarily upon terminals, refineries, storage depots, dry ports, short to medium lengths of navigable waterways along airports, industrial zones and to periphery of the Indus River, leveraging for freight and passenger urban areas. opportunities given its scale economies, uncongested (iv) Capacity of existing pipelines will be fully utilized routeways, and low emissions. and enhanced, including the application of (iii) Freight operations will focus on the handling appropriate technologies. of dry bulk volumes, together with intermodal (v) Safety, security, technical and environmental container handling. standards to comply with applicable regulations (iv) Passenger ferry services will target cross-river linkages, and policies. urban transit corridors, and coastal estuaries/ zones, as (vi) The pipeline system will be independently regulated. alternatives to rail and road access. Private sector participation will be considered on (v) An inland waterway transport master plan will be commercial basis. developed, actively exploring other navigable rivers (vii) Public-private partnerships in pipeline systems will and canals, considering effective riverine water be encouraged. management planning. (viii) Enhancement of pipeline related statistics will be (vi) Environmental, safety and security regulations will pursued to support evidence based decision making. be developed. (vii) Enhancement of inland waterway related statistics will be pursued to support evidence based decision making.
33 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6.7 Urban transport (ix) Freight will be routed through dedicated freight corridors, limiting urban pass-through transport. Overall direction of urban transport under the Policy: (x) For large urban cities, final mile distribution centres (i) Urban transport will be considered as a single will be established where appropriate. integrated transport system and planned in (xi) Waterway transport, as a freight and potential accordance to the hierarchy of modes, including passenger transport mode will be actively pursued public transport, private transport, non-motorized within cities, where appropriate. transport, and freight transport. (xii) Urban transport authorities will be established to (ii) Individual urban transport master plans will be plan and regulate local transport services and to developed for all major cities in accordance to the license urban public transport. An enabling legislative principles of Transit Oriented Design, looking at a 10- framework for existing and emerging transport year timeframe with a 20-year horizon. services will be developed to promote effective (iii) Public transport will be implemented, covering sustainable transport. the metropolitan urban area, integrating the main (xiii) Public transport fares will reflect the willingness destinations and to inter-urban transport terminals. and ability to pay, allowing targeted Public Service Mass transit systems, including bus rapid transit and Obligations Regulations to be considered. commuter rail lines will be considered for all cities. (xiv) Electric and other low-carbon transport will actively (iv) Walking and cycling networks and facilities will be be pursued to reduce greenhouse gas emissions, developed and implemented as an integral part of phasing out of the internal combustion engine. the urban streetscape and will be fully integrated with other modes to minimise use of private (xv) Safety and security of the urban transport system will motorised transport where possible. be enhanced. (v) Integrated traffic management, utilizing intelligent (xvi) Enhancement of urban related statistics will be transport and information systems, will be pursued to support evidence based decision making. implemented to manage passenger and freight transport flows. Central urban traffic control systems will be considered for all major cities. (vi) The aspiration or attraction of the use of private motor vehicles in urban areas will be dissuaded. (vii) Parking policy will be established, limiting the parking of private cars. (viii) Air quality will be monitored and interventions will be taken where levels exceed national standards.
34 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
6.8 Multimodal logistics
Overall direction of multimodal logistics under the Policy: (i) Multimodal logistics will be strengthened to enhance current and prospective domestic and international supply chain integration, including the promotion of domestic distribution, national import and export trade, and regional transit trade. (ii) Intermodal terminals will be expanded and enhanced to facilitate seamless integration of logistics via road, rail, marine, inland waterway, and aviation. (iii) Peripheral freight stations will be developed to connect freight from inter-urban networks to the urban transport networks to tranship to local trucks. (iv) Multimodal logistics will promote a shift towards higher value-added logistics services and from road to alternative modes. (v) The logistics sector will be established as a commercially viable industry that provides effective, efficient and safe freight transport operations in compliance with national and international regulations. (vi) Freight logistics, forwarding, and distribution services will be primarily delivered through private sector enterprises, facilitated and regulated by public trade and transportation facilitation agencies. (vii) Enhancement of service quality, reliability, and cost effectiveness of the logistics sector through the promotion of information and communication technology. (viii) Knowledge and skill bases of multimodal logistics will be made at par with international best practice. (ix) Enhancement of logistics related statistics will be pursued to support evidence based decision making.
35 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
7. Implementation arrangements
36 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
7. Implementation arrangements
The implementation of this Policy shall require the An Advisory Committee on Transport shall be constituted collective effort of all concerned Ministries and by the Cabinet Committee on Transport to guide the Divisions of the Federal Government, as well as all technical development, implementation, monitoring and Provinces and Territories. evaluation of the Policy and Master Plan. It shall support the Cabinet Committee on Transport in all its tasks to ensure effective coordination among concerned Ministries and This Policy shall be coordinated by the Cabinet Division. This Divisions of the Federal Government, all Provinces responsibility may be entrusted and overseen across all sub- and Territories. sectors through the Cabinet Committee on Transport. In the mid- to long-term this may be conveyed through a Federal Ministry of Transport. The Advisory Committee on Transport will include representations from all concerned ministries, provinces and territories, public transport agencies and institutions, The Cabinet Committee on Transport shall be constituted with a rotating chairmanship. The Advisory Committee on by the Prime Minister or Cabinet within 3 months of the Transport will be convened at least every three-months approval of this Policy. The Cabinet Committee on Transport and more frequent when and if required. The Transport will be chaired by the Prime Minister and may include the and Communications Section of the Ministry of Planning Ministers responsible for Communications, Maritime Affairs, Development and Reform shall serve as the Secretariat Railways, Aviation, Inter-Provincial Coordination, Planning to monitor the implementation of the Policy and and Development, Finance, representation of all the accompanying Transport Master Plan and to provide the provinces and territories, and other members as deemed necessary support for the Advisory Committee appropriate. The Cabinet Committee on Transport will be on Transport. convened twice a year, and more frequently when and if required.
The mandate of the Cabinet Committee on Transport will be to: (i) Oversee all matters, including the development, monitoring and implementation, of this Policy, as well as the National Transport Master Plan framed thereunder (ii) Oversee all matters, including the development, harmonization, monitoring and implementation, relating to transport policy and all related subsector policies, strategies and plans (iii) Coordinate the development, monitoring and implementation of related policies and local transport strategies and plans (iv) Evaluate performance of the transport sector and take necessary measures for necessary adjustment (v) Consider periodic review this Policy and National Transport Master Plan for updating as and when required (vi) Mobilize and direct required resources to implement this Policy and National Transport Master Plan (vii) Implementation of any other tasks assigned to the Committee by the Cabinet.
37 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
For the implementation of this Policy, appropriate changes shall be made in relevant rules, regulations and modal Involvement of sector associations agreements. In particular: Government of Pakistan may wish to establish a (i) To detail the recommendations and actions of this consultative program with sector associations to: Policy, the Government of Pakistan shall produce a National Transport Master Plan covering a time (i) better appreciate what is important for the horizon of 10 years, and to be updated on a 5-year private sector, basis, coinciding with updates to the Five-Year Plans of the Government of Pakistan. (ii) discuss and concur with the required reforms (ii) The Annual Plan of the Government of Pakistan shall in both legislation, pending sector policies and (i) incorporate progress on the implementation of this compliance matters, and Policy and supporting National Transport Master Plan, (ii) detail the actions proposed for the upcoming year. (iii) other matters which will arise and which will need attention. (iii) Update the PC1 process to reflect the Policy Principles and Objectives, including the need for a Business Program actions could include a review of the next case, as guiding tool for a rapid assessment and steps, the sponsoring and implementation of training approval process to be applied to transport sector programs both within Pakistan and at international related investments and reforms. workshops, the presenting of awards for excellence in the delivery of outcomes of the Policy. This Policy will be referenced as the National Transport These actions could take place with quarterly Policy 2017, Government of Pakistan. meetings at a Provincial/District level and half-yearly reviews of progress and resultant next steps agreed. The Government of Pakistan reserves the right to change terms of this Policy in response to changes in national transport needs. Updates to this policy shall be undertaken through an inclusive collaborative effort with key stakeholders as has been the case for the preparation of this Policy.
38 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
8. Bibliography
39 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
8. Bibliography
Asian Development Bank. (2015). Country Gender Assessment: Pakistan - Final Report.
Asian Development Bank. (2015). Regional: Promoting Gender Inclusive Growth in Central and West Asia: Consultants Report. Asian Development Bank.
Ministry of Finance. (2017). Pakistan Economic Survey 2016-2017. Islamabad.
Pakistan Bureau of Statistics. (2017). Provisional summary results of 6th population and housing census-2017.
Pakistan Civil Aviation Authority. (2016). Major Traffic Flows by Airlines during the year 2015-2016.
Planning Commission. (2014). Pakistan Vision 2025.
Planning Commission. (2016). Multidimensional Poverty in Pakistan.
Planning Commission. (n.d.). Rural Accessibility Index - World Bank methodology.
United Nations. (2017). World Population Prospects: The 2017 Revision.
World Bank. (2016). Logistics Performance Indicator. Retrieved from lpi.worldbank.com
World Bank. (2017). South Asia Economic Focus 2017.
World Health Organization. (2016). WHO Global Urban Ambient Air Pollution Database (update: May 2016).
40 of 40 DRAFT – for concurrence National Transport Policy of Pakistan 2017
41 of 40 DRAFT – for concurrence